Other brands discount more off of list?

[thomaspp]

I'd like to ask the knowledgable TRF members whether in your experience the sellers of "other brands" (ie. brands other than Rolex, Patek and AP) typically offer more of a discount (as a percentage) off of list prices. In particular say hubolt, panerai, breitling, cartier.

I see why the "other brands" would need to do so in order to compete as the resale values on the "other brands" (with panerai being an exception perhaps) seem to do less well in terms of resale value.

[kilyung]

In my experience, most brands discount much heavier than PP or Rolex. These brands could sell 100% of their production without any discounts.

[~JJ]

Hmmm, I don't think the other brands appreciate their ADs giving discounts, but ADs discount these brands as they would with any of the other brands that you listed, within reason. However, I do see a link between any brand / model that give heavy discounts and the loss of value in the secondary market. It appears to be a catch 22 in the respect of an AD starts to discount, then word travels and people expect and hunt for similar discount, so the secondary market needs to go even lower in price to compete. Then people notice that model doesn't hold it's value, so new market sales slow due to uncertainty and the AD discounts more to move inventory... slippery slope (IMO).

[thomaspp]

Originally Posted by kilyung

In my experience, most brands discount much heavier than PP or Rolex. These brands could sell 100% of their production without any discounts.

Thanks, Mike. AP not so much huh? Seems AP is discounting more. The watch market is just odd in that in my experience you can get 15% off of precious metal rolexes and 17% off of APs and it seems like 20% or more in breitlings or hubolts. It's funny how list prices eventually just become a reference for the "actual price".

Originally Posted by ~JJ

Hmmm, I don't think the other brands appreciate their ADs giving discounts, but ADs discount these brands as they would with any of the other brands that you listed, within reason. However, I do see a link between any brand / model that give heavy discounts and the loss of value in the secondary market. It appears to be a catch 22 in the respect of an AD starts to discount, then word travels and people expect and hunt for similar discount, so the secondary market needs to go even lower in price to compete. Then people notice that model doesn't hold it's value, so new market sales slow due to uncertainty and the AD discounts more to move inventory... slippery slope (IMO).

Thanks. It's an interesting phenomenon and all boils down to how firm demand is for certain brands/models I suppose.

[LA_LEC]

MSRP is there for a reason and that is for a reference of what the item is to be sold for. Discounting from the MSRP cheapens the brand. Who is going to pay the sticker price is they know that they can always get a discount? The price become a joke.

How many people go to a 5 star restaurant and ask for a discount off of the lobster? If you have to ask for a discount you are eating at the wrong restaurant.

[d1000rr]

I've been offered over 30% on Breitlings.

[thomaspp]

Originally Posted by LA_LEC

MSRP is there for a reason and that is for a reference of what the item is to be sold for. Discounting from the MSRP cheapens the brand. Who is going to pay the sticker price is they know that they can always get a discount? The price become a joke.

How many people go to a 5 star restaurant and ask for a discount off of the lobster? If you have to ask for a discount you are eating at the wrong restaurant.

Thanks, Lee. Agree that discounting can be a problem for watch brands. That being said every watch I've bought has been discounted or tied to some other perk (like when I bought my Aquanaut). I'm not shy about asking for discounts at ADs or elsewhere - money saved will fund more watches and I also don't want to overpay in a market that is becoming more and more.prone to discounting it seems. The issue appears to be that watch brands only take back about 60% of MSRP leaving the ADs with a 40% margin to play with.

[thomaspp]

Originally Posted by d1000rr

I've been offered over 30% on Breitlings.

Thanks. Interesting.

[jay1988]

AP will discount in my experience. As has been said Rolex and PP are the two that don't really do it because they sell so well and retain their value.

I called up about Grand Seiko and was given a 25% disocunt on the phone. If I walked in and put money down God only knows what they'd give.